ITC to shift agri division HQ to Guntur from Hyderabad

ITC is shifting its headquarters of Rs 8,000-crore agri-business division, currently at Hyderabad, to Guntur, along with a plan to expand into new commodities, including food-safe spices and millets.

"We are planning to build half-a-million square foot of residential and office space to locate the headquarters of the agri-business division here. The spending may be around Rs 200 crore," ITC chairman Y C Deveshwar said on Friday. He was here for the foundation-laying for the company's My Fortune hotel here. The 144-room hotel is being built at an investment of Rs 145 crore. The company proposes to start operations in the new hotel in 2019.

The company's move comes on the back of its plans on further expanding the agri-business in collaboration with the farmers in Andhra Pradesh, similar to collaboration it has with Guntur tobacco farmers for the past 100 years. The company would be shifting about 500 people to the new location.

Spices are tested for the presence of 457 kinds of pesticides and chemicals before being allowed into the US and UK and ITC plans to tap the full export potential by collaborating with the farmers in growing spices to meet the international food-safe parameters. And also the company plans to expand its Ashirwad brand to millets as the consumption of millets in the country growing on health reasons. Thirdly, ITC would enter into shrimp business by packaging and marketing the shrimp procured in AP, for the domestic market. On the company's foray into dairy industry, the ITC chairman said they have yet to take a call whether to set up their own dairies or procure milk from others. The company owns a dairy in Mungher and also launched a cow ghee brand in Chennai to gain the insights into the dairy business.

Complimenting chief minister N Chandrababu Naidu for his government's efforts towards building the new capital, Amaravati among other things, Deveshwar said the new opportunities for the growth of business and commerce will emerge all around Guntur because of the government initiatives.

Responding to a question, the ITC chairman said the company will build a hotel in Amaravati if it was able to get a right location.

ITC Limited